1 An online music service company wants to know if customer

1. An on-line music service company wants to know if customer age is a factor in whether a person decides to subscribe. The company has gathered a random sample of 1000 people from the population, and asked each person whether he or she would be likely to subscribe to the service. They also asked which age group the person falls into: under 18 years of age, 18-34 years of age, and 35 years or older.

a) Explain why the company could use a chi-square test to answer its question.

b) The answer choices for each person interviewed were \"Yes\" , \"No\" and \"Maybe\". How many degrees of freedom would the chi-square test have?

Solution

The chi square is intended to test how likely it is that an observed distribution is due to chance.

Here the company wants to know if customer age is afactor in whether a person decides to subscribe so the company wants to know the probability of the person subscribing from a particular age group which is why the company could use chi square test.

Degrees of freedom = (3-1)(2-1) = 2